Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-04-08

THE INTERSTATE PROBLEM.
Correspondence between Senator Stan
ford and the Commission.
WASHINGTON, April 7th.-The following
correspondence fully explains itself:
SAN FEAScIsco April 4, 1857.
T. M Cooley, Chairman Interstate Commerce
Commission: The question before u.s. in com
petition with the SueZ Canal route for business
with China and Japan, is whether we can make
competing prices through to Atlantic ports at
less rates than local rates charged saw. from
San Francisco to New York, the line from China
and Japan being a continuous one in coDnec-
tion with the Central Pacific and Union Pacific
railways. The question is also before us of
making in competition with Cape Horn and
the lsthmus OF Panama Railroad, a rate that
permits shipments between san Francisco and
Atlantic poris-those rates. in order to meet
competition being necessarily lower for the
longer distance than those charged for the
shorter ana far below what would be IL reason
able rate for service performed. We construe
the fourth section of the Interstate Commerce
Act practically to be, in substance the applica-
ton TO interstate commerce OF the common law
prlnc1ple-that the shipper shall avail himself
OF competition, and that less rate may be
charged for longer than for u shorter distance
providing more could not be obtained. If the
right of competition is recognized as between
carrier and shipper, our carrying business will
not be interrupted; but otherwise we Shall be
unable to compete for the Chinese and japanese
trade with the Suez Canal, and also unable to
compete with the water routes by Panama and
Cape Horn for business originating in Cali
fornfa. We await your construction
LELAND STANFORD,
President Southern Pacific Railroad Company
THE COMMISSIONERS REPLY.
WAsHINGToN, April ., 1887.
Ledsd SANFORD, President Southern Pacific Rdil-
road Company Applications to the Commission
for special exception under the interstate com
merce law can only be granted after investiga-
tion into the facts. A verified petition setting
forth the ground OF the application should be
presented 7. NJ. COOLEY, Chairman.
SENATOR STANFORD EXPLAINS.
II M Cooley-sIR: We don't ask for a ruling
upon a special case, but a construction of See
tion 4. Asall business between the Pacific and
Atlantic ports is governed by competition. bust
ness from the portsof China and Japan, across
the continent to Atlantic ports, is governed by
competition, and agents in China and Japan, to
obtain business, fix rates to meet the competi-
ton of the Suez Canal. One of the OTientaland
Occidental Company's ships viii arrive in a few
days with cargo mostly for points east of the
Rocky Mountains. If the rates established by
other companies are maintained, contracts
made for these shipments cannot be carried out
All through business of overland lines Is in
volved, and we cannot accept and dispatch
t eight except upon general ruling applicable
to al business. The question arises upon every
ton OF freight offered for shipment, aud prac-
tically-we find ourselves unable to do through
business. You will see, therefore, that any spe-
cial ruling, or exception, will not meet the case,
as il arises upon every ton of freight offered.
LELAND STANFORD.
WASHINGTON, April 7. 1887.
Leland .SdaJord-SIE The Commission were
under no Misrepresentation regarding the fa, ts
They still hold that il, rather than take the re-
sponsibility of your own construction, you call
for authoritative action, the case must be
formally presented by petition, and then inyes-
tigated by them. I. NJ. COOLEY.
Chairman.
THE COMMISSION WILL TAKE pEST.
WASHINGTON, April 7th.-The applica-
tion of steamship lines and merchants of
Boston to authorize trunk lines of railroad
from Chicago to Boston to continue the
export trade on the same basis as hereto
fore, giving equal rates with New York on
all merchandise exported, has been re-
terred to Commissioner Walker for inves-
tigation. The Commission will take
recess from to-day until Friday of next
week, during which time Commissioner
Walker will visit Boston and examine
into the matter.
ANOTHER SUSPENSION OF THE LONG AND
SHORT HAUL CLAUSE.
WASHINGTON, April 7th.-The Interstate
Commerce Commission has to-day pro-
mulgated the following:
The Detroit, Grand Haven and Milwaukee
Railroad Company having made application for
g suspension of the operation of Section of the
interstate commerce law so far as il would
apply to traffic taken across Lake Michigan to
Grand Haven, and destined to points east of De-
troit ana st. tlalr rivers, and having assigned as
reason for such suspension that said railway
company owns and operates a line of boats on
Lake Michigan. and has been doing SO for many
years past, and by common consent It's COM
petltorS have been allowed to charge q less
rate from Milwaukee, by way of Grand
Haven, in the traffic above men,
toned, than Is charged on the all-rail
lines by way OF Chicago on like traffic,
and that the making of such less rates by said
railway company is just and fair as between
Milwaukee and Chicago, and is necessary to en-
able said petitioners to compete with said lines
by way of Chicago and said railway company
points on its line east of Lake Michigan it has
been customary to make rates on such traffic
which are greater for shorter thsn for longer
hauls which greater charges are reasonable
and correspond to those made by the competing
lines and the Commission having heard said
application and duly considered 1t, and it ap-
pearing to the Commission that the case is
proper one for temporary relief, it is now or
dered that for a period OF ninety days from this
date the operation of said fourth section OF the
interstate commerce law be suspended, as TO
traffic from Milwaukee, over petitioners line.
AN ENTERING WEDGE.
PHILADELPHIA, April 7th.-The general
opinion among railroad officials in this
city is that the action of the Interstate
Commerce Commission on the long-and-
short-haul question concerning Southern
viii crush the entire measure
They argue that this is the most vital feat
ure of the entire Act, aud that the stand
taken by the Commission, even though it
be of temporary nature, is an entering
wedge that viii split the whole log.
THEATRICAL PEOPLE EXERCISED.
CHICAGO, April 7th.-A largely attended
meeting of managers and other persons
connected with the theatrical business was
held bere to-day to consider the effects Of
the interstate commerce law upon their
Representatives from all the
Chicago theaters, ,theater-printing establish
ments and q large number of travelling
were present. The Commission
will be asked TO suspend for this season the
provisions of the law which, as interpreted
by the railroads, is an especial hardship
on theatrical people. II was argued that
this would be no more than justice, mas
much as majority OF contracts made prior
to the passage of the law contained clauses
with which it had now become otherwise
impossible to comply.
THE LAW AFFECTS EXPRESS COMPANIES.
New YORK, April 7th.-The Superintend-
ent of the Canadian Express Company has
been notified by the Interstate Commerce
Commission that express companies are
directly affected by the new railroad law
This decision is surprise to the express
here, and has caused a decidedly
nervous feeling among them.
THE RAILWAY MYSTERY.